Sony is positioned to benefit from the Nov. 19 launch of Grand Theft Auto VI, the most anticipated video game release in years. The PlayStation maker faces rising memory chip prices that threaten hardware margins. Take-Two's GTA VI will be priced at $79.99 on PS5 and will be digital-only.
Sony is set to benefit from the Nov. 19 launch of Grand Theft Auto VI even as rising memory chip prices pressure its PlayStation margins.
"GTA VI will be console only and the vast majority of new users will choose a PlayStation 5," Serkan Toto, founder of Kantan Games consultancy, said.
Take-Two has sold almost 230 million units of Grand Theft Auto V since its 2013 launch. The sequel was delayed twice. GTA VI on PS5 will be priced at $79.99 for the base version and will be digital-only, aligning with Sony's plan to stop making physical discs from 2028. Sony has earned $4.2 billion from first-party PC and Xbox ports.
The GTA VI launch will soften the decline of PS5 hardware sales this year and support growth in software sales, said Piers Harding-Rolls, research director at Ampere Analysis. However, CLSA analyst Amit Garg said Sony will lose substantial money selling PS5 hardware if current memory prices for future contracts are factored in.
Sony launched the PS5 in 2020 and weathered pandemic-era supply chain disruption. More recently, it has been buffeted by AI investment-driven memory price rises and has repeatedly raised prices for its consoles. The company has said it has secured memory supply for this financial year but expects prices to continue to be high next year.
"Sony would have preferred GTA VI to arrive earlier in the life of the PlayStation 5 to drive momentum during its rapid adoption phase rather than when the cycle is starting to burn out," Harding-Rolls said. "Following increases, PS5's price point is now higher than ideal with GTA VI coming to market."
PS5 user Albertus Andaru Hutama, who lives in Jakarta, said he wished GTA VI would be sold on a disc at that price point. "Although the timeline is delayed ... the excitement is still there," the 31-year-old said.
The GTA VI launch provides a significant catalyst for Sony's gaming segment, which has generated $4.2 billion from PC and Xbox ports. Investors will watch Sony's first-quarter earnings on Friday for updated guidance on memory cost exposure and PS5 sales trajectory.
This article is for informational purposes only and does not constitute investment advice.
